Farm Debt Mediation Act (S.C. 1997, c. 21)

Act current to 2016-01-25 and last amended on 2015-02-27. Previous Versions

Guardian of Farmer’s Assets

Marginal note:Administrator to appoint guardian
  •  (1) Where the administrator issues a stay of proceedings under paragraph 7(1)(b), the administrator shall forthwith appoint one of the following persons as guardian of the farmer’s assets:

    • (a) the farmer, where the farmer is qualified to be the guardian; or

    • (b) in any other case,

      • (i) any other qualified person nominated by any secured creditor or secured creditors listed in the application, or

      • (ii) any other qualified person chosen by the administrator.

  • Marginal note:Informing farmer and creditors

    (2) The administrator shall forthwith inform the farmer, and all the creditors listed in the application, of the appointment of the guardian.

  • Marginal note:Expenses of guardian

    (3) Where the administrator appoints a person referred to in subparagraph (1)(b)(i) as guardian, the expenses of the guardian shall be paid by the secured creditor or secured creditors who nominated that person.

  • Marginal note:Expenses of guardian

    (4) Where the administrator appoints a person referred to in subparagraph (1)(b)(ii) as guardian, the expenses of the guardian shall be paid by the administrator.

Marginal note:Duties of guardian
  •  (1) The administrator may issue directives to the guardian, and the guardian shall comply with any such directives.

  • Marginal note:Duties of guardian

    (2) The guardian shall, in addition to the obligation under subsection (1),

    • (a) prepare an inventory of all the assets of the farmer;

    • (b) verify periodically the presence and condition of those assets; and

    • (c) advise the administrator of any act or omission that would jeopardize those assets.

Marginal note:Termination of guardianship

 The appointment of a guardian under section 16 terminates on the expiration or termination of the stay of proceedings.

Arrangements

Marginal note:Arrangement

 If a farmer enters into an arrangement with a creditor, or with the Minister, as a result of the mediation, the administrator shall see to its signing by the parties.

  • 1997, c. 21, s. 19;
  • 2015, c. 2, s. 147.

New Applications

Marginal note:New applications under paragraph 5(1)(a)
  •  (1) Notwithstanding any other provision of this Act, where a farmer makes an application under paragraph 5(1)(a), that farmer, or any person who is related to that farmer within the meaning of the regulations, is not entitled to make a new application under that paragraph in respect of substantially the same farming operation for a period of two years after

    • (a) the date on which the first application was made, where the farmer did not enter into an arrangement with the creditors during the stay of proceedings, or

    • (b) the date on which the arrangement was signed, where the farmer entered into an arrangement with the creditors,

    unless, before making the new application, the person seeking to apply obtains the written consent of the administrator.

  • Marginal note:New applications under paragraph 5(1)(b)

    (2) Notwithstanding any other provision of this Act, where a farmer makes an application under paragraph 5(1)(b), that farmer, or any person who is related to that farmer within the meaning of the regulations, is not entitled to make a new application under that paragraph in respect of substantially the same farming operation for a period of two years after

    • (a) the date on which the first application was made, where the farmer did not enter into an arrangement with the creditors within the period prescribed for the mediation, or

    • (b) the date on which the arrangement was signed, where the farmer entered into an arrangement with the creditors,

    unless, before making the new application, the person seeking to apply obtains the written consent of the administrator.

Notice by Secured Creditors

Marginal note:Notice by secured creditors
  •  (1) Every secured creditor who intends to

    • (a) enforce any remedy against the property of a farmer, or

    • (b) commence any proceedings or any action, execution or other proceedings, judicial or extra-judicial, for the recovery of a debt, the realization of any security or the taking of any property of a farmer

    shall give the farmer written notice of the creditor’s intention to do so, and in the notice shall advise the farmer of the right to make an application under section 5.

  • Marginal note:Time of notice

    (2) The notice referred to in subsection (1) must be given to the farmer in the prescribed manner at least fifteen business days before the doing of any act described in paragraph (1)(a) or (b).

General

Marginal note:Contravention by creditor
  •  (1) Subject to subsection (2), any act done by a creditor in contravention of section 12 or 21 is null and void, and a farmer affected by such an act may seek appropriate remedies against the creditor in a court of competent jurisdiction.

  • Marginal note:Innocent parties protected

    (2) Subsection (1)

    • (a) does not affect the title to property of a person who purchased the property in good faith from the creditor and who was not then related to the creditor within the meaning of the regulations; and

    • (b) does not confer on the farmer any remedy against a person described in paragraph (a).

Marginal note:Disputes

 Nothing in this Act prevents any party to an arrangement made under this Act from taking a dispute arising therefrom to a court of competent jurisdiction for disposition.

Marginal note:Communication of information
  •  (1) Except as authorized by subsection (2), no person shall knowingly communicate or knowingly allow to be communicated to any person any information that is obtained under this Act from a farmer, from a farmer’s creditor or from the Minister or knowingly allow any person to inspect or have access to that information.

  • Marginal note:Exception

    (2) A person engaged in the administration of this Act, or a mediator or expert referred to in subsection 4(4), may communicate or allow to be communicated, or allow inspection of or access to, the information referred to in subsection (1) to or by any other person engaged in the administration of this Act or any person otherwise legally entitled to the information.

  • Marginal note:Protection of witness

    (3) A person engaged in the administration of this Act, or a mediator or expert referred to in subsection 4(4), is not compellable to answer questions concerning the information, or to produce records or other documents containing the information, as evidence in any proceedings not directly concerned with the enforcement or interpretation of this Act or the regulations.

  • 1997, c. 21, s. 24;
  • 2015, c. 2, s. 149.
Marginal note:Personal liability

 A person engaged in the administration of this Act, or a mediator or expert referred to in subsection 4(4), is not personally liable for anything done or omitted to be done in good faith in the performance of their duties under this Act.

  • 1997, c. 21, s. 25;
  • 2015, c. 2, s. 150.
Marginal note:Regulations
  •  (1) The Minister may make regulations

    • (a) respecting the designation of persons as administrators pursuant to subsection 4(2);

    • (b) for permitting a farmer or creditor to request the administrator to replace the mediator or guardian with a different mediator or guardian;

    • (c) respecting the entering into of agreements under subsection 9(3);

    • (d) respecting the qualifications and appointment of mediators, and respecting the manner in which and the period within which mediators must perform their duties under subsection 10(2);

    • (e) respecting the time by which an administrator must decide whether or not to extend a stay of proceedings pursuant to subsection 13(1);

    • (f) respecting the number and constitution of Appeal Boards, the designation of the members thereof, and the manner in which and the period within which appeals under subsection 15(2) shall be made and dealt with;

    • (g) respecting the meaning of “related” for the purposes of section 20 and for the purposes of subsection 22(2);

    • (h) prescribing anything that by this Act is to be prescribed; and

    • (i) generally for carrying out the purposes and provisions of this Act.

  • Marginal note:Forms and their content

    (2) The Minister may establish forms and other documents for carrying out the purposes and provisions of this Act and may determine the information to be included in such documents, and, without limiting the generality of the foregoing, may determine the manner of

    • (a) amending an application; and

    • (b) providing information or notices required by this Act.

  • 1997, c. 21, s. 26;
  • 2015, c. 2, s. 151(E).
 
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